I just upgraded my Dell 630 from 10.3 to 11.1 by re-formatting / and
then installing 11.1. I left the other partitions alone. Two of the
partitions are encrypted. The /dev/sda2 (/home) partition was detected
by YaST and I was able to mount it with no problem.

However, when YaST found the second partition (/dev/sda7), it declared
that it needed to be formatted. When I unchecked the "format" box, and
tried to add it, I got:
Could not set encryption
System error code -2001
The crypt password could be incorrect.

I'm sure that the password is correct. It's the same one as that for /
dev/sda2.

I deleted the entry for /dev/sda7 and continued on to install the
system. I later tried to add the partition but got a message from the
partition that said: